U.S. stock futures are lower as investors continue to worry about inflation, equity valuations, and a top in economic growth. Also, news that Senate Republicans and President Biden are still far apart on a new infrastructure deal is another concern. Meanwhile, later today, the FOMC April meeting minutes will be released, potentially giving guidance on the health of the U.S. economy.
The S&P 500 sold off late in the day, closing at 4127.83, just below support at 4128.59. The volume did pick up with 2,310,848,256 shares traded, and RSI dove below the middle lien closing at 49.00. The heavy selling is a concern, and the 50-day moving average at 4076.46 is now in play as potential support. The index needs to rally today back above 4128.59, or more selling could come in and push it lower. Another wide range down day would negate last week’s rally, and the 4056.88 level would be the next possible support.
We are currently long-term bullish and short-term cautious.
John N. Lilly III CPFA
Accredited Portfolio Management Advisor℠
Accredited Asset Management Specialist℠
Portfolio Manager, RJFS
Windsor Wealth Planners & Strategist
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The Relative Strength Index (RSI), developed by J. Welles Wilder, is a momentum oscillator that measures the speed and changes of price movements.
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